Last week, the European market saw a correction in thermal coal indices to 365 USD/t after reaching a historic high of 425 USD/t on June 23. The pressure on the prices is also resulted from the coal stocks growth and resumption of gas transportation through the Turkish Stream pipeline.

Gazprom completed scheduled maintenance works (June 21-28) on the Turkish Stream gas pipeline, which supplies gas to South and Southeastern Europe in addition to Turkey. Moreover, Colombia's new President Gustavo Petro, who advocates the transition to clean energy sources, admitted that the country will nevertheless increase coal supplies to Europe after he takes office.

Coal stocks at ARA terminals reached 7.8 mio t (+0.3 mio t w-o-w), approaching the September 2019 record.

South Africa

South African High-CV coal quotes dipped below 330 USD/t amid a correction in the European market and lower demand from India and Pakistan. Pakistani authorities have instructed local enterprises to increase coal imports from Afghanistan to replace South African material due to its high cost.


In China, spot prices for 5500 NAR dropped to 185.5 USD/t FOB Qinhuangdao. The decrease in steam coal quotations on the Chinese market was caused by an upsurge in domestic production, growth of stocks and pressure from the regulator. Last week, the National Development and Reform Commission of China (NDRC) demanded all market participants to promptly bring prices of long-term contracts into compliance with the established restrictions. Coal inventories in the port of Qinhuangdao amounted to 5.8 mio t (+0.5 mio t w-o-w).


Australian coal indices consolidated above 390 USD/t, owing to growing demand from Asian buyers, including Japan, which is reducing its consumption of Russian coal. Besides, the prices were supported by measures of Australian authorities to increase shipments to the domestic market in order to avoid the energy crisis.


Indonesian 5900 GAR was trading at 190 USD/t FOB Kalimantan. Indonesian prices remain under pressure following low demand from Chinese and Indian buyers, that is also driven by competitive Russian coal supplies.


Australian metallurgical coal quotations continued to plunge below 305 USD/t as the supply continues to significantly exceed the demand, following lower steel prices and reduced production by steel mills.

On June 24, 2022, Japanese Nippon Steel and South Korean POSCO agreed with Australian Foxleigh on a Low Vol PCI benchmark of 396 USD/t for Q2 2022. This is a new all-time high for PCI coal, exceeding Q1 2022 benchmark by 96 USD/t.